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TThe automotive refinish coatings market size is forecasts to increase by USD 2.2 billion with growth at a CAGR of 3.84% between 2023 and 2028. Market expansion hinges on various factors, notably the heightened emphasis on research and development alongside innovative strategies to streamline cycle times. Additionally, the provision of robust support services facilitates the efficient utilization of coatings, enhancing their value proposition. Moreover, economic stability, coupled with rising disposable incomes, contributes significantly to market growth by fostering greater consumer spending power. These interconnected factors collectively drive the market forward, fostering innovation, efficiency, and economic prosperity. As organizations continue to invest in research, optimize operational processes, and cater to evolving consumer needs, the market for coatings is poised for sustained growth and development.
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The market focuses on restoring original color and finish post-vehicle repair, emphasizing corrosion protection and UV radiation protection for enhanced longevity. With concerns over road accidents and vehicle collisions, there's a demand for water-based coatings and low VOC coatings ensuring environmental friendliness. Advancements in color matching and application techniques address vehicle aesthetics, with innovations like nanotechnology and robotic painting systems. Solutions like sprayless scratch repair systems and digital color matching cater to diverse surface damage needs, catering to trucks and various specialty vehicles amidst regular maintenance routines. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The market is growing due to heightened R&D and innovation to cut cycle times. Global firms invest in R&D for new refinish coating tech to meet changing customer needs and enhance their product range. Companies like BASF and PPG develop products to trim cycle time, boost efficiency, and cut operational costs. For instance, BASF's eco-friendly Onyx HD coat is applied to vehicles, causing no VOC emissions.
Under Direct Repair Programs (DRP), repair shops partner with insurers to streamline accident claims, reducing documentation time. PPG's MVP solutions train shop owners and managers in new technologies, drawing more participation. These programs impart knowledge in Lean Six Sigma and tech implementation, cutting cycle time and improving performance. Thus, the R&D focus and innovative methods to shorten cycle times drive global auto refinish coatings market growth.
The market is witnessing a notable trend with the increasing adoption of UV-curable coatings, driven by their high-performance attributes such as strong adhesion and flexibility. Manufacturers are intensifying their research and development efforts to create UV-curable coatings that provide effective scratch and mar resistance. For example, BASF has introduced multi-functional polyol intermediates for producing UV-curable acrylic monomers and oligomers, leading to environmentally friendly, high-performance coatings.
Similarly, Akzo Nobel offers a UV-curable clearcoat, outperforming traditional clearcoats in application, appearance, and protection. Stricter environmental regulations, notably by the EPA and China's Ministry of Environmental Protection, are elevating the demand for eco-friendly UV-curable and water-borne coatings, boosting growth in the market.
The market growth might be impeded by the shifting supply-demand equilibrium. Evolving consumption habits, technological breakthroughs, and novel product introductions pose formidable obstacles for the market. Manufacturers offer efficient coating processes to curtail volume consumption, employing specially designed spray guns that minimize coating wastage. The surge in these innovations has reduced coating consumption. However, recycling coatings further limits consumption but encourages sustainable practices. The gradual transition toward these technologies is anticipated. Companies are prioritizing differentiation, performance, innovation, and launches to maintain a competitive edge.
Further, the escalating desire for low-maintenance, durable vehicles constrains the market. Hybrid Electric Vehicles (HEV) find favor for short commutes and reduced upkeep. Regulatory pressure and pollution concerns bolster HEV popularity due to their eco-friendliness and performance advantages like acceleration and minimal maintenance. Governments endorse HEVs to curb fuel consumption, noise, and air pollution. This supply-demand shift poses a significant hurdle for the global automotive refinish coatings market's growth in the forecast period.
The market share growth by solvent-based coatings segment will be significant during the forecast period. The solvent-based coatings segment accounted for the largest share of the global automotive refinish coatings market in 2022. Solvent-based coatings are types of coatings that use solvents to dissolve the ingredients of the coating to make it more spreadable and easier to apply. Solvent-based coatings have been widely used in the automotive refinishing industry because they offer a high-quality finish, good durability, and excellent resistance to weathering, chemicals, and abrasion.
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The solvent-based coatings segment was valued at USD 4.22 billion in 2018. However, stringent regulations have reduced the demand for these coatings as they have a higher content of organic solvents in comparison to water-based solvents. These organic solvents are harmful to the environment and humans. They improve the drying speed, texture, and color and ensure a smooth surface of coatings. Further, mnufacturers have also developed low-VOC and eco-friendly solvent-based coatings to meet the demand of customers who prioritize environmental sustainability. This is expected to drive the growth of the solvent-based coatings segment in the market during the forecast period.
Based on the application, the passenger car segment holds the largest market share. The passenger cars segment is a significant market for automotive refinish coatings. Passenger cars are used for personal transportation and include various types of vehicles, such as sedans, hatchbacks, SUVs, and sports cars. Passenger cars require high-quality coatings that provide excellent finish, durability, and resistance to weathering, scratches, and other forms of wear and tear. Automotive refinish coatings for passenger cars are designed to match the original factory color and texture of the vehicle, providing an even and consistent finish that enhances its appearance. Thus, growing sales of EV passenger cars will increase the demand for automotive refinish coatings, which, in turn, will boost the growth of the passenger cars segment in the market during the forecast period.
APAC is estimated to contribute 51% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Rapid urbanization, the rising number of road collisions, the increasing presence of automobile manufacturers, the rise in vehicle ownership, the growing preference for old, refurbished vehicles, and the presence of global and local companies are major factors driving the market research and growth of the market in APAC.
Companies are implementing various market growth analysis and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
KAPCI Coating Systems LLC - The company offers automotive refinish coatings such as 800 Etch primer, 805 wash primer.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
3M Co., Akzo Nobel NV, Alps Coating Sdn Bhd, Angel Coating Pvt. Ltd., Axalta Coating Systems Ltd., BASF SE, BERNARDO ECENARRO S.A., Carl Schlenk AG, Covestro AG, General Paint Co., Kansai Paint Co. Ltd., KAPCI Coating, Nippon Paint Holdings Co. Ltd., NOROO Paint and Coatings Co. Ltd., NOVOL Sp zoo, PPG Industries Inc., S.Coat Co. Ltd., Tara Paints and Chemicals, The Sherwin Williams Co., and TOA Paint Thailand Public Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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The market growth and forecasting report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is thriving, driven by demand for topcoat solutions that combat paint fading and preserve the appearance of newer vehicles. Consumers seek personalized vehicles with unique aesthetics, boosting automotive sales and the need for advanced color matching systems and spectrophotometers. Vehicle owners opt for vehicle customization and refurbishing older vehicles with eco-friendly coatings to reduce volatile organic compound (VOC) emissions. These coatings shield against sunlight, rain, snow, and road debris, enhancing vehicle appearance and protection while contributing to reduced emissions and improved air quality. Options include polyurethane, alkyd, activator, solvent-borne, water-borne, and UV-cured coatings.
Further, the market addresses vehicle repair needs, offering water based coatings for sustainable solutions amidst concerns over environmental factors. With vehicle modification and aging concerns, filler and basecoat options are crucial, alongside specialty coatings for diverse applications. Chipping issues are mitigated with advanced application techniques and digital color matching solutions, ensuring precise touch-ups and seamless finishes, meeting the demands of modern automotive refinishing.
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Automotive Refinish Coatings Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.84% |
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Market growth 2024-2028 |
USD 2.20 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.64 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 51% |
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Key countries |
China, US, Japan, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., Akzo Nobel NV, Alps Coating Sdn Bhd, Angel Coating Pvt. Ltd., Axalta Coating Systems Ltd., BASF SE, BERNARDO ECENARRO S.A., Carl Schlenk AG, Covestro AG, General Paint Co., Kansai Paint Co. Ltd., KAPCI Coating, Nippon Paint Holdings Co. Ltd., NOROO Paint and Coatings Co. Ltd., NOVOL Sp zoo, PPG Industries Inc., S.Coat Co. Ltd., Tara Paints and Chemicals, The Sherwin Williams Co., and TOA Paint Thailand Public Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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